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Petroleum

Oil Prices Plummet Amid IEA Report and Weather Forecasts

Strategic Insights

— 1 min read

Crude and product prices sharply declined Monday in response to the International Energy Agency's (IEA) report indicating a significant increase in member countries' crude stockpiles and a downward revision of fourth-quarter oil demand. The anticipated mild weather in much of the country further contributed to the decline in natural gas futures. Major oil companies reacted differently to the market fluctuations, with some lowering prices on unleaded gasoline and low-sulfur diesel, while others raised prices of No. 2 heating oil.

Key Takeaways:

  • Crude stocks among IEA members are 28 million barrels higher than a year ago, leading to a decrease in oil prices.
  • The IEA lowered its fourth-quarter oil demand by 100,000 barrels per day.
  • Light sweet crude for December delivery fell 37 cents to $18.39 per barrel on the New York Mercantile Exchange (Nymex).
  • December Brent fell 36 cents to $17.37 per barrel on London's International Petroleum Exchange.
  • December reformulated gasoline futures took the biggest hit, falling 1.88 cents per gallon to 56.64 cents per gallon.
  • Natural gas futures plunged due to mild weather in much of the country, with December futures setting a life-of-contract low of $1.756 per million British thermal units (MMBtu).
  • Major oil companies had a mixed reaction to the market fluctuations, with some adjusting prices on unleaded gasoline, No. 2 heating oil, and low-sulfur diesel.

Statistics:

  • Crude stockpiles among IEA members are 28 million barrels higher than a year ago.
  • Fourth-quarter oil demand was lowered by 100,000 barrels per day.
  • Light sweet crude for December delivery fell 37 cents to $18.39 per barrel on Nymex.
  • December Brent fell 36 cents to $17.37 per barrel on the International Petroleum Exchange.
  • December reformulated gasoline futures fell 1.88 cents per gallon to 56.64 cents per gallon.
  • December natural gas futures set a life-of-contract low of $1.756 per MMBtu.

Sources:

  • International Energy Agency (IEA) report
  • New York Mercantile Exchange (Nymex)
  • London's International Petroleum Exchange
  • Original article, WASHINGTON --

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